Another under-$10 stock that's trending within range of triggering a near-term breakout trade is
(OSIR - Get Report)
, which is focused on developing and marketing products to treat medical conditions in the inflammatory, orthopedic and cardiovascular areas. This stock has been a major winner so far in 2012, with shares up 80%.
If you take a look at the chart for Osiris Therapeutics, you'll notice that this stock has been uptrending modestly higher for the last month and change, with shares moving from a low of $8.05 to its recent high of $10.36 a share. During that uptrend, shares of OSIR have been mostly making higher lows and higher highs, which is bullish technical price action. Shares of OSIR have just recently started to challenge its 50-day moving average at $9.59 a share and its moving within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in OSIR once it breaks out above some near-term overhead resistance levels at $10 to $10.36 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action 102,592 shares.
Traders can look to buy OSIR off any weakness as long as it's trending above some near-term support $9.02 a share. I would simply use a stop that sits just below that level if you buy off weakness. One can also buy off strength once OSIR clears those breakout levels with volume and then simply use a stop that sits just below its 50-day at $9.59 a share.